|
| |
|
| |
| |
| |
| |
Make provision in connection with the upper earnings limit for national |
| |
insurance contributions (including in particular provision about the upper |
| |
| |
Be it enacted by the Queen’s most Excellent Majesty, by and with the advice and |
| |
consent of the Lords Spiritual and Temporal, and Commons, in this present |
| |
Parliament assembled, and by the authority of the same, as follows:— |
| |
1 | Amount to be specified as upper earnings limit: Great Britain |
| |
(1) | In section 5 of the Social Security Contributions and Benefits Act 1992 (c. 4) |
| |
(earnings limits and thresholds for Class 1 contributions)— |
| |
(a) | in subsection (1), omit the words from “which” to the end, and |
| |
(b) | omit subsection (3) (amount to be specified as upper earnings limit). |
| 5 |
(2) | In section 176(1) of that Act (statutory instruments subject to the affirmative |
| |
procedure), after paragraph (za) insert— |
| |
“(zb) | regulations under section 5 specifying the upper earnings |
| |
| |
(3) | The amendments made by subsections (1)(b) and (2) have effect in relation to |
| 10 |
regulations specifying the upper earnings limit for 2009-10 or any subsequent |
| |
| |
2 | Amount to be specified as upper earnings limit: Northern Ireland |
| |
(1) | In section 5 of the Social Security Contributions and Benefits (Northern |
| |
Ireland) Act 1992 (c. 7) (earnings limits and thresholds for Class 1 |
| 15 |
| |
(a) | in subsection (1), omit the words from “which” to the end, and |
| |
(b) | omit subsection (3) (amount to be specified as upper earnings limit). |
| |
(2) | In section 172 of that Act (control of regulations and orders), after subsection |
| |
| 20 |
“(11ZB) | A statutory instrument containing (whether alone or with other |
| |
provisions) regulations under section 5 specifying the upper earnings |
| |
|
| |
| |
|
| |
|
limit shall not be made unless a draft of the instrument has been laid |
| |
before and approved by resolution of each House of Parliament.” |
| |
(3) | The amendments made by subsections (1)(b) and (2) have effect in relation to |
| |
regulations specifying the upper earnings limit for 2009-10 or any subsequent |
| |
| 5 |
3 | Additional pension: upper accrual point to replace upper earnings limit from |
| |
| |
(1) | The Social Security Contributions and Benefits Act 1992 (c. 4) is amended as |
| |
| |
(2) | In section 22(2B) (earnings factors), for “the flat rate introduction year” (in both |
| 10 |
places) substitute “2009-10”. |
| |
(3) | In section 44(7)(c) (category A retirement pension), for “the flat rate |
| |
introduction year” (in both places) substitute “2009-10”. |
| |
(4) | In section 122 (interpretation)— |
| |
(a) | in subsection (1), for the definition of “the upper accrual point” |
| 15 |
| |
““the upper accrual point” is £770;”, |
| |
(b) | after subsection (6) insert— |
| |
“(6A) | The Treasury may by regulations prescribe an equivalent of the |
| |
upper accrual point in relation to earners paid otherwise than |
| 20 |
weekly (and references in this or any other Act to “the |
| |
prescribed equivalent”, in the context of the upper accrual |
| |
point, are to the equivalent prescribed under this subsection in |
| |
relation to such earners). |
| |
(6B) | The power conferred by subsection (6A) includes power to |
| 25 |
prescribe an amount which exceeds by not more than £1 the |
| |
amount which is the arithmetical equivalent of the upper |
| |
| |
(c) | omit subsections (7) and (8). |
| |
4 | Consequential amendments and repeals |
| 30 |
(1) | Schedule 1 contains consequential amendments. |
| |
(2) | Schedule 2 contains repeals. |
| |
| |
(1) | Sections 1 and 3 extend only to England and Wales and Scotland. |
| |
(2) | Section 2 extends only to Northern Ireland. |
| 35 |
(3) | Sections 4, 6 and 7 and this section extend to each part of the United Kingdom. |
| |
(4) | But an amendment or repeal contained in either Schedule has the same extent |
| |
as the provision amended or repealed. |
| |
|
| |
|
| |
|
| |
| |
| |
| |
Social Security Contributions and Benefits Act 1992 (c. 4) |
| |
1 | The Social Security Contributions and Benefits Act 1992 is amended as |
| 5 |
| |
2 | In section 22 (earnings factors), after subsection (8) insert— |
| |
“(9) | References in this Act or any other Act to earnings factors derived |
| |
from so much of a person’s earnings as do not exceed the upper |
| |
accrual point or the upper earnings limit are to be read, in relation to |
| 10 |
earners paid otherwise than weekly, as references to earnings factors |
| |
derived from so much of those earnings as do not exceed the |
| |
| |
3 (1) | Section 23 is amended as follows. |
| |
(2) | In subsection (3)(a), for “subsection” substitute “subsections (3A) and”. |
| 15 |
(3) | After subsection (3) insert— |
| |
“(3A) | For the purposes specified in section 22(2)(b) (additional pension), |
| |
subsection (3)(a) has effect in relation to 2009-10 and subsequent tax |
| |
years as if the reference to the upper earnings limit were to the upper |
| |
| 20 |
4 (1) | Section 44A (deemed earnings factors) is amended as follows. |
| |
(2) | In subsection (1)(a), for “the upper earnings limit” substitute “the applicable |
| |
| |
(3) | After subsection (5) insert— |
| |
“(5A) | In subsection (1)(a) “the applicable limit” has the same meaning as in |
| 25 |
| |
5 | In section 44B(2)(a) (deemed earnings factors: 2010-11 onwards), for “the |
| |
applicable limit” substitute “the upper accrual point”. |
| |
6 (1) | Paragraph 1 of Schedule 1 (Class 1 contributions where earner employed in |
| |
more than one employment) is amended as follows. |
| 30 |
(2) | In sub-paragraph (3) (as it has effect without the amendments made by |
| |
paragraph 45(2) of Schedule 4 to the Pensions Act 2007 (c. 22))— |
| |
(a) | in paragraph (b), for “the current upper earnings limit” (in both |
| |
places) substitute “the upper accrual point”, |
| |
|
| |
|
| |
|
(b) | after that paragraph insert— |
| |
“(ba) | if paragraph (b) applies, the amount obtained by |
| |
applying the main primary percentage referred to |
| |
in paragraph (d) to such part of the aggregated |
| |
earnings attributable to COMPS service as, when |
| 5 |
added to the APPS earnings (if any), exceeds the |
| |
upper accrual point and does not exceed the |
| |
current upper earnings limit,”, |
| |
(c) | in paragraph (c), for “the current upper earnings limit” (in both |
| |
places) substitute “the upper accrual point”, and |
| 10 |
(d) | after that paragraph insert— |
| |
“(ca) | if paragraph (c) applies, the amount obtained by |
| |
applying the main primary percentage referred to |
| |
in paragraph (d) to such part of the aggregated |
| |
earnings attributable to COSRS service as, when |
| 15 |
added to the APPS earnings or the part attributable |
| |
to COMPS service (or both), exceeds the upper |
| |
accrual point and does not exceed the current |
| |
| |
(3) | In sub-paragraph (3) (as amended by sub-paragraph (2) above and by |
| 20 |
paragraph 45(2) of Schedule 4 to the Pensions Act 2007 (c. 22))— |
| |
| |
| |
(i) | omit “if some of the aggregated earnings are attributable to |
| |
| 25 |
(ii) | for “the current upper earnings limit” substitute “the upper |
| |
| |
(c) | in paragraph (ca), omit— |
| |
(i) | “if paragraph (c) applies”, and |
| |
(ii) | “, when added to the APPS earnings or the part attributable |
| 30 |
to COMPS service (or both),”. |
| |
(4) | After sub-paragraph (10) insert— |
| |
“(11) | In relation to such earners, any reference in this paragraph to the |
| |
upper accrual point is to be read as a reference to the prescribed |
| |
equivalent (see section 122(6A)).” |
| 35 |
(5) | The amendments made by sub-paragraphs (2) and (4) have effect in relation |
| |
to 2009-10 and subsequent tax years. |
| |
Pension Schemes Act 1993 (c. 48) |
| |
7 | The Pension Schemes Act 1993 is amended as follows. |
| |
8 (1) | Section 8 (meaning of “contracted-out employment” etc) is amended as |
| 40 |
| |
(2) | In subsection (2), in the definition of “minimum payment”, for “the current |
| |
upper earnings limit” substitute “the applicable limit”. |
| |
(3) | After that subsection insert— |
| |
“(2A) | In subsection (2) “the applicable limit” means— |
| 45 |
|
| |
|
| |
|
(a) | in relation to a tax year before 2009-10, the upper earnings |
| |
| |
(b) | in relation to 2009-10 or any subsequent tax year, the upper |
| |
| |
9 | In section 12B(7) (contracted-out pension scheme: reference scheme), in the |
| 5 |
definition of “the applicable limit”— |
| |
(a) | for “the flat rate introduction year” (in both places) substitute “2009- |
| |
| |
(b) | in paragraph (b), after “point” insert “multiplied by 53”. |
| |
10 (1) | Section 41 (reduced rates of Class 1 contributions for members of salary |
| 10 |
related contracted-out schemes) is amended as follows. |
| |
(2) | In subsection (1) for “the applicable limit for that week” substitute “the |
| |
| |
(3) | Omit subsection (1ZA). |
| |
(4) | The amendments made by this paragraph have effect in relation to 2009-10 |
| 15 |
and subsequent tax years. |
| |
11 (1) | In section 42A(1) (reduced rates of Class 1 contributions, and rebates, for |
| |
members of money purchase contracted-out schemes), for “the current |
| |
upper earnings limit for that week” substitute “the upper accrual point”. |
| |
(2) | The amendment made by sub-paragraph (1) has effect in relation to 2009-10 |
| 20 |
and subsequent tax years. |
| |
12 (1) | In section 45(1) (personal pensions: amount of minimum contributions), for |
| |
“the current upper earnings limit for that week” substitute “the upper |
| |
| |
(2) | The amendment made by sub-paragraph (1) has effect in relation to 2009-10 |
| 25 |
and subsequent tax years. |
| |
13 (1) | Paragraph 2 of Schedule 4 (priority in bankruptcy etc: employee’s |
| |
contributions to occupational pension scheme) is amended as follows. |
| |
(2) | In sub-paragraph (5), in paragraph (b) of the definition of “reckonable |
| |
earnings”, for “the applicable limit” substitute “the upper accrual point”. |
| 30 |
(3) | Omit sub-paragraph (6). |
| |
(4) | The amendments made by this paragraph have effect in relation to |
| |
payments made in a tax week falling in 2009-10 or any subsequent tax year. |
| |
|
| |
|